AS Level Economics

Which of the following is a free good?

• Covid test provided by the school

• Sample of coffee from Starbucks

• Sunshine

• None of the options

In economics, the wind coming from the sea is considered a free good. What is the reason for this?

• Wind is a renewable resource

• There is no opportunity cost of using wind

• Unlimited amounts of wind can be consumed

• None of the options.

What is the basic problem facing all economies?

• What rate of income tax taxpayers should pay

• How to maximise tax revenue

• How to reach full employment

• How to use scarce resources

Which type of factor of production is coal?

• Land

• Capital

• Enterprise

• Labour

Inputs available for the production of goods and services is known as?

• Choice

• Wants

• Needs

• Resources

Complete the sentence.

The fundamental problem in economics is that wants are_______, but resources are ________.

• limited, scarce

• scarce, limited

• scarce, unlimited

• unlimited, scarce

What does output mean?

• Goods produced by the factors of production

• Services produced by the factors of production

• Goods and services produced by the factors of production

• None of the options

Which of the following can encourage enterprise?

• Improved education

• Lower taxes

• Less regulation

• All of the options

Which of the following influences the size of the labour force?

• Size of the population

• The school leaving age

• The retirement age

• All of the options

Which resources are used to produce free goods?

• No resources are required

• Capital

• Land

• Enterprise